tv Bloomberg Markets Middle East Bloomberg September 19, 2016 12:00am-1:01am EDT
>> a burning need to beat apple. ahead. to come out >> it is midday here. welcome to bloomberg markets. what we are seeing is market participants heading to the exits with a meeting taking place in our jeers. how is it looking? there may be an output freeze. up on exports and the meat on the bones. money managers are betting on gains and declines in the oil prices.
again, a lot of this is a larger and supply this is the informal meeting with the biotech members. tried to manage expectations. what you are looking at is the most since july. that there is more uncertainty coming. is's check out how this crudeg and there is the and thereup almost 2% is about a sense of barrow.
there was an issue relating to a component and things eventually leftack to normal and it investors unable to trade in the united states this week. to pay more ine tax rate payments could be just the beginning. >> they said the decision must not be allowed to stand. -- lobal news is local attempts to cool the the numbers were for
some have made it more difficult the prices rise and there is quite an of tech with prices remaining soft and the tailored approach did not work, according to these numbers. that seems to me policymakers are running out of options in the market. is definitely becoming more difficult with intelligence warning that getting this right and curbing the prices and stimulating sales growth with entries very high and these
numbers go through to bloomberg intelligence. for their part, the people's bank of china says that they are and we arebubbles going to be watching what they city sought record implementingy are the prices are there is a boost for toerials and they will have get their head around this soon. >> they may call the
extraordinary meeting with a strategy later this month. then, rebounding after falling last week. what is going on here? pressurewas a lot of was speculation about fragile it and how thisith the clashes and and you get aled stronger dollar and you see the prices climb today. andhere are informal talks
they had serious challenges to stabilize the market. >> absolutely. the challenges were on display and this was going to us longer than originally predicted and supplies and a tangible decision and whether they will. the points in the could probably and this could unwind efforts to push producers out of the markets. have an extraordinary meeting called after this. >> there is an extraordinary processand it is a long
that we are going through and you can see the formal talks and it is close on stabilizing markets. >> thank you. let's get you the latest with the trading day. here is heidi. >> there are some of these on whative thoughts they may or may not be able to achieve and it will give rise to a meeting with a consensus on commodities we have energy-heavy markets doing well and we take a look at what we're and we havetaiwan the tech stocks rallying higher
and there is this expectation to worriesnd there are with the cost be of and they make up for lost ground with the week and shanghai pushes little bit higher. tom goes through and drive some of the development we're seeing. there is a chinese company seeed in hong kong and we the bank of china and casino andes are dragging this commodity currencies drag the leading gains and japan is
watching bloomberg. decisions andlicy at the investors forum here. the markets remain sensitive. >> the consequences of the crisis are still spreading out and i think we will get rate rises and it all depends on how the markets look. northwestern professor remains optimistic on growth prospects. iswhat is being talked about the increase in the federal funds and virtually no impact on the economy. andink we have had too much
this is about the wrong -- the the great old days of the adventure. do tot more can they boost the growth? is a limit to what monetary policy can do. unfortunately, the policies is not been there. they have been the only game in they're going to have to do something else. we have to go over to sydney. , we have the bank of
and they have this a little more closely. of, the thing is, the path least resistance is to the outside. true to anthat is extent and what we have seen is theknowledge meant that central bank policy puts downward pressure on yields and it has unintended consequences for life insurance and pension funds. that ands cognizant of can pull off the yield curve, which may be achieved by taking rates to negative territory and ancing sang -- and nu
yields and it will depend on whether the stock market combines a steeper curve with the stock market. and whatsee the upside the bank of japan does could be swamped by what the market takes away a few hours at the bank of japan. storiesve the breaking that were suspended earlier and the trades with the conditions and you can see the australian markets. how much do you think that abe is leaning on not taking rates
further negative? they could be feeling this with the net interest rate margins. >> absolutely. andgo back to january 29 the rates you taken negative with the selloff in the japanese stocks and the rest is history. blow 100. expecting aon is different result and they would be well advised not to take this further with interest rates and they think the key is the yield they will have negative territory as the way to go.
>> the other big thing we're probability of the hike and it is down from a week ago. strugglingral bank to get invesrs off of those policies? certainly, if they were coming out of jackson hole and trying to put the markets on this, they would have failed and, having stressed this policy and being confronted with mixed anders in a last few weeks the retail sales numbers we had with the consumer confidence numbers we had and knowing the reaction by the federal reserve chair is one of management and
not doing anything they would play into me, it will there isno change and a risk of unleashing a correction in the bond market and we could see a spike with the yields. >> it is great to have you on this program. all right. goll coming up, days to before the latest policy decision. takell ask gerald on his for when the rates will rise.
>> welcome back. this is bloomberg. >> there is only a story for the investors. and they haveents our correspondent has when this will move. opinion and ital is based on economics and measures the chief is looking at. my sense is that i do not see it happening next to opportunities and i think that central banks and it being very dovish all has the determined to do something. about lowerking
rates. >> in your personal opinion, should she be moving? there are some who say these basis points do not make a difference. that it is to agree killing saving and pension funds do not get returns. there is no spread for people to make money. long-term, this is problematic and we would love to see other central banks look at this policy is monetary not going to generate the economic growth that all of us are looking for. >> you have been hurt by persistent waving of money market funds. how do you make money?
what are your earnings? we have said that we can't wait for the reengineering of there aress model and a lot of different market factors and we are attacking the cost structure of the company. in the next 24e months? clarity is in the financial markets, whether it is brexit creating uncertainty or , there isates moving a pace of technological change two embrace the uncertainty and help the and thes help the staff
with the oil markets. they had met a consensus. the secretary says that he is optimistic about this implementation. >> the official attempts what the property market appear to have a limited impact and the value of home sales rose at the fastest pace in august. curbs on purchases and lending have yet to offset the market. withports from new york five in custody. said that there was
no terrorist connection. >> in hong kong, i am rishaad so .om i >> we're getting you started for the european trading day. good to see you. let's talk about the european politics and the economy, which is looming large. we will be live with the latest on this election and the andonal elections in berlin coalition partners did not have a great night. the alternative for deutsche land extended their challenge and we are a year away from the national election in germany. the social democrats declined by
5% points in those elections. less than they were defeated and they candidate, saying it is not a good day for the traditional parties. what will this do to merkel and storm --s for a fourth fourth term? hereve the latest numbers was 78% of the votes counted and -- >> you are watching economic data that could give us a better idea of how things will hold up after brexit. >> we have mixed signals coming and the london asking prices
picking up. up withseen a date pick u.k. capital rising and we have seen this move with exaggerated it is a volatility and complicated picture. if you look at kensington and chelsea, it shows something sluggish, with prices falling in the region and lead trend has generally been for september. the confidence survey comes through and there is a drop in of theex with a survey small-to-medium sized businesses here. >> thank you. there is a desire to defeat apple and a rush to the galaxy
note, which included batteries that overheat and explode. there are tighter deadlines, despite the phone featuring new features. what is the history of competition here? we know they are bitter rivals. >> right. this goes back to the first iphone being introduced and samsung coming out with a smartphone of their own and apple sued. it got complicated. gets thehat relationship more complicated and apple i sound -- iphone sales will go and turn into a fiasco with battery problems. >> this has given unusual
insight into samsung to help understand the origins of this battery crisis. tell us what they have found. samsung rushing to come out with a new smartphone and they have always been in a practice of pushing out models and things got more complex and complicated. fast-charging function. there has beens the development in the note. thate sources told us there was a rush to deadline and they had to do more work and they had to really rush this
launch. the key thing is the testing stage and no one discovered this travel and it hits the end consumerd the discovers this problem, creating a real drawback and there was a huge discussion of pointing fingers and coming out with an apology, doing a recall, and still going through damage control. >> think you very much. here is juliet. struggling airbag maker is putting itself up for sale with the biggest safety recall.
they are asking for submitted proposals this week. this is a chinese airbag maker who they are working with. a lift in shares in singapore today. this is on track to raise $2 billion. they warned that it could be another two years before a return to profit. the second quarter loss has caused a slump over the past months. there are four container ships returned with 34 vessels still stranded. this comes as the application for receivership will help decide whether or not this can be rescued with shares tumbling this year. global news 24 hours a day is powered by journalists and
analysts in 120 countries stop this is bloomberg. london hasr of wrapped up a trip to canada. topicsss a range of and integration into western society. people who say that the western liberal values are not compatible with islam. i think that's nonsense and i think that it is possible to be a westerner and muslim. ande are proud muslims s who are muslim. thatving the impression
being western is not compatible with seeing a muslim, you're playing to the hands of isis. historythis remarkable of being a beacon for tolerance, diversity, dreams, and potential. why would you ever give the impression that muslims are not welcome? it is a simple point. i have friends and family in america and i know that america is a fantastic country. >> where will you take donald trump? >> i would take him to parts of london that are diverse. there are challenges and you have generations of londoners living side-by-side and breaking bread together, falling in love with each other.
>> a check of the headlines right now and the first ever crude shipment. this is as forces battle for the facility. there was a local petroleum facility and they tried to seize control on sunday. oil source.largest this has slashed oil exports. >> expecting washington to grant licenses by the end of the month
to clear the way for new airplanes. jetswill purchase boeing and this follows an agreement with airbus. to require export licenses from the united states. >> a joint venture announced .oday with a lease agreement scale of thete the .hange in the property markets >> from the financing point of do not know how you rationally underwrite another project, given the dynamics of what is going on
with supply and demand, and what is going on over the next months. it is not as positive as you would want it to be. tothis is expected to grow around $37 million by 2020 and it is supported by government efforts to attract tourists. joining us now is the president and the chief executive officer. it is great to have you on this program. .he occupancy levels are up you look at the average daily rates and they are down. what is your take on the health of the market? >> at the moment, the problem is the occupancy that is doing great. there is suffering from the
amount of hotels and the hotel ares in dubai and abu dhabi increasing with a positive side of occupancy. ensuree working hard to that they are bringing people in to the aramid -- to the emirates. this and this is the second year in a row where we see double-digit decreasing. and thes a presence yields are under pressure was supplies. >> the opportunity is to overcome some of the problems we have with the source markets. marketsearch for these to bring in this business and we have to work harder to capture
this business. a price war and everybody wants a piece of this action and they have to ramp this up and they put out the promotional challenges.ig hard toaid, working keep these occupancies time. -- high. decreasentioned the and it is a huge hit to be taking. are you in the business of occupancy solving problems? >> you talk about these decreasing and what we do is we start working on how we maintain costs with autumn lines and that
before a few years ago, there was a net profit that was considered magnificent and it could drop and be considered very good. in all honesty, i think it will be worse, before it gets better. >> you get some of the other and you get down hotelsifestyles with that have to build to get different customers and. -- customers in. sure that wemade were able to reach all the pockets and all the money that people can spend and we have done that well and we are moving to other geographical locations to make money and moving this to turkey was great.
turkey took a hit and we are moving to africa with other opportunities. >> you have tended to be a first-mover and taking a bit more risk than conventional hotels. what market are you focusing on and do you see a lot of potential for? deals.e signed a few are you looking to push further? at wehave started working ine a management agreement 2013. in terms of new management agreements, we are still busy and there isities a lot of focus on iran. we are close and it makes sense for us. we have been able to get in and
do business and they are trying hard to make sure that they will lead a way forward to make this a little bit easier and we are attacking africa. this is a target. >> how is this playing out for you and how much demand you see with this online offering? >> it is disruptive. two tiny the truth, this coming into play is helping a city develop the economy in bringing business in to the city and we are seeing a double-digit willase of hosts and it hurt the business, to a certain helpingnd this is economies in the region.
i'm not against it and there is the thing i can do about this going forward. i need to focus on what is good for me and what i can manage. >> bear has been a comprehensive set of reforms and a plan. the market has been excited by the economy of scale their. what is your take on changes that are happening. >> there is a huge potential for us and this is grossly have justd and we opened the property and we will open others over the next year with bighotels potential. ande are a lot of players
we have the senior level in the leadership level looking positive for the industry, which focuses on tourism and a lot of industries that make saudi arabia more approachable. >> thank you for joining us on the program. the chief executive officer and the president of the management corporation. >> thank you. still to come, growing concerns with market borrowers taking on currency risks. we will get to this story. this is bloomberg.
risk. they say they may face ethics volatility with letting this outstrip the buffer. we are joined now for more analysis. how significant is this? >> very significant. we are seeing a detailed study of emerging market borrowing marketsmpted into bond with so much demand for higher fund for thee the local projects and you are seeing the cost of paying back bonds with a rising dollar environment coming on the horizon and we are seeing this happen and it raises a potential
risk going forward with this being pointed out in them saying that iran has comfort of amounts of reserves -- comparative amounts of reserves to meet. >> let's stick with currencies. to the topging on performer and it was not supposed to go this way. >> it isn't that much of a surprise. we were talking about how we would be saying this would be been a rollers coaster with a formal impeachment and taking the reins with this coming back to brazil to the country is trying
meet and cover this. and yout a good place may see a little bit of this in the market. it is probably good news for exporters. >> we thought things could not the s&p hasd downgraded the country further into junk. >> not a good place. they have gone a step further rates goingria with a bit higher and investors taking a grim view of this situation in nigeria with the following oil prices, political corruption, scandals, and the president having issues with commitments.
♪ debate, decisions from the fed and boj looming. we look ahead to a huge week for central banks. new york sets up security following saturday's dumpster bombing as the united nations general assembly meets. oil prices climb amid reports opec may call an extraordinary meeting. its members are taking census on strategy later this month. the mayor of london urges reassurance as it begins the process of brexit negotiations. we hear from him later in the program. ♪